Financial analysis

Question 1

benchmarking

Answer 1

motivates employessd and helps managers evaluate performance, comparing a comany with its prior performance or with best practices from other companies

Question 2

participative budget

Answer 2

those who are directly impacted by a budget are involved in the development of the budget

Question 3

Budgetary slack

Answer 3

managers intentionally understate expected revenues or overstate expected expenses

Question 4

zero-based budget

Answer 4

all revenues and expenses must be justified for each new period. The previous year’s actual results are ignored

Question 5

strategic budget

Answer 5

long-term financial plan used to coordinate the activities needed to achieve the long-term goals

Question 6

operational budget

Answer 6

short-term financial plan used to coordinate the activities needed to achieve the short-term goals

Question 7

continuous budget

Answer 7

operational budget that involve continuously adding one additional month as each month goes by

Question 8

static budget

Answer 8

only one level of sales volume

master budget is a static budget, so it is prepared for only one level of sales volumes

Question 9

flexible budget

Answer 9

for various levels of sales volume.
separate variable costs from fixed costs
the variable costs put the flex in the flexible budget

Question 10

master budget

Answer 10

set of budgeted financial statements and supporting schedules for an entire organization

Question 11

operating budgets

Answer 11

set of budgets that projects sales revenue, cost of goods sold, and selling and administrative expenses, all ow which feed into the cash budget and then the budgeted financial statements

Question 12

capital expenditure budget

Answer 12

presents company’s plan for purchasing long-term assets

Question 13

financial budget

Answer 13

includes the cash budget and the budgeted financial statements

Question 14

cash budget

Answer 14

details how the business expects to go from the beginning cash balance to the desired ending cash balances

Question 15

GOGS how to calculate

Answer 15

beginning inventory + purchases - ending inventory

Question 16

purchases how to calculate

Answer 16

Gogs + ending inventory - beginning inventory

Question 17

budget performance report

Answer 17

report that summarizes the actual results, budgeted amounts and the differences

Question 18

variance

Answer 18

the difference between an actual amount and the budgeted amoun

Question 19

static budget variance

Answer 19

difference between actual results and the expected results in the static budget

Question 20

to create flexible budget you need:

Answer 20

budgeted selling price per unit, budgeted variable cost per unit, total budgeted fixed costs, different levels within the relevant range

Question 21

flexible budget variance

Answer 21

difference betwee actual results and expected results in the flexible budget for actual units sold

Question 22

sales volume variance

Answer 22

difference between expected results in the flexible budget for the actual units sold and the static budget

Question 23

standard

Answer 23

is the price, cost or quality that is expected under normal conditions

Question 24

standard cost system

Answer 24

is an accounting system that uses standards for product costs

Question 25

cost variance

Answer 25

measures how well the business keeps unit costs of material and labor inputs within standards

Question 26

cost variance how to calculate

Answer 26

AC-SCxAQ

Question 27

efficiency variance

Answer 27

measures how well the business uses its materials or human resources

Question 28

efficiency variance how to calculate

Answer 28

AQ-SQxSC

Question 29

manyfacturing | overhead

Answer 29

valmistus kustannukset

Question 29

manyfacturing | overhead

Answer 29

valmistus kustannukset

Question 30

overhead allocated to production

Answer 30

standard overhead allocation rate x standard quality of the allocation base allowed for actual output

Question 31

fixed overhead volume variance

Answer 31

Fixed overhead cost standard x (direct labor efficeincy standardxpaljonko tuotetta tehtiin

Question 32

management by exceptions

Answer 32

occurs when managers concentrate on results that are outside the accepted parameters

Question 33

sunk costs

Answer 33

costs that were incurred in the past and cannot be changed

Question 34

differential analysis

Answer 34

short-term decisions: regular and special pricing, dropping unprofitable products and segments, product mix, and sales mix, outsourcing and processing further

Question 35

price-taker

Answer 35

with little control over pricing. | company is price taker when:produvt lacks uniqueness, intense competition, pricing approach emphasizes target pricing

Question 36

price-setter

Answer 36

more control over pricing. | product is more unique, less competition, pricing approach amphasizes cost-plus pricing

Question 37

target pricing

Answer 37

starts with the market price of the product and then subtracts the company's desired profit to determine the maximum allowed target full product cost revenue at the market price - desired profit

Question 38

cost-plus pricing

Answer 38

starts with company's full product costs and adds its desired profit to determine a cost-plus price full product cost + desired profit

Question 39

outsourcing

Answer 39

ulkoistaminen

Question 40

gross profit marigin

Answer 40

net sales-GOGS/net sales

Question 41

gross profit:

Answer 41

net sales-COGS

Question 42

weighted-average method

Answer 42

keskiarvo | cost of goods available for sale/number of units available

Question 43

inventory turnover

Answer 43

COGS/average merchandise inventory

Question 44

average merchandise inventory

Answer 44

beginning inventory + ending inventory/ 2

Question 45

High-low method

Answer 45

1.Variable cost per unit: laske ylin-alin hinta / ylin-alin kpl määrä 2. total fixed cost: ylin hinta - (1. step x ylin kpl määrä) 3. total mixed cost: 1. step x annettu kpl määrä + 2. step

Question 46

contribution marigin

Answer 46

paljon rahaa on saatu myymällä- paljon rahaa on menny variable costiin revenue-variable cost

Question 47

unit contribution marigin

Answer 47

paljon yks on myyny- paljon yhen tekemiseen on menny | price-COGS

Question 48

contribution marigin ratio

Answer 48

jaetaan unit contribution marigin net sales revenue per unitilla. eli sillä paljolla yks kpl on myyty

Question 49

the equation approach

Answer 49

net sales revenue x X -variable x X - fixed cost=0 tai jos halutaan päästä tiettyyn summaan nii se summa. Mutta ratkotaan siis x

Question 50

contribution marigin approach

Answer 50

fixed cost + target profit / contribution marigin per unit

Question 51

contribution marigin ratio approach

Answer 51

fixed cost + target profit /contribution marigin ratio + fixed cost kertoo dollareina

Question 52

marigin of safety

Answer 52

mikä on break even pointin ja expected salesin välissä

Question 53

marigin of safety kappalaissa

Answer 53

expected sales-breakeven sales

Question 54

marigin of safety dollareissa

Answer 54

marigin of safety in units x paljonko yks kpl maksaa

Question 55

marigin of safety prosentteina

Answer 55

marigin of safety in units / expected sales in units

Question 56

degree of operating leverage

Answer 56

paljonko yritys voi nostaa operating incomea nostamalla revenueta lasketaan: Contribution marigin / operating income(fixed cost)